Essay PreviewMore ↓
HR is the key to organizational success or failure. HR policies and practices must be tired to overall organizational strategy. Discuss with examples, how the organization can develop competitive advantage through superior Human Resource Management.
In order to ensure organizational success, there are various things to keep in mind. Firstly we need to define the organization strategy. What is an organizational strategy? Kay states that strategy is about the achievement of competitive advantage which, in his view, is based upon an organizational identifying, developing and applying to relevant markets its distinctive capabilities, which are most often derived from the unique character of its relationships with its suppliers, customers or employees.’ The strategy would include aspects such as cost minimization which would involve optimum utilization of resources at minimum possible cost, this a traditional approach, on the other hand an organization could adopt profit maximization strategy which would involve taking risks and thus a more unconventional approach. Typically once the strategy is prepared the focus is on accomplishing these objectives. But how can this be done?
Do you remember the first day at work? It’s a mixed feeling of nervousness and excitement. You get all geared up to commence our first assignment and go to the managers cabin and get all the required details of the assignment. But what is the most crucial thing in order to ensure successful accomplishment of the assignment?
Alignment of Manager’s understanding of the assignment along with yours. This is essential because unless you don’t understand the manager’s point of view of the assignment and what he is trying to say you will be unable to fulfill it and similarly unless the managers doesn’t understand your point of view it will difficult to complete the assignment successfully.
Similarly, in order to fulfill the organizational strategy successfully the Human Resource aspect needs to be given importance as well in order to ensure competitive advantage, thus alignment of Human Resource Strategy and Organizational Strategy should be of prime importance to the management. Although this step is often missing in the process of strategy formulation.
How to Cite this Page
"Management Of Human Resources." 123HelpMe.com. 21 Apr 2019
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Human Resources have been believed to be a cost to the organization that needs to be minimized and controlled. However, in recent years, the connection of human capital to financial performance has been well recognized. Many organizations battle not only the tough competition, but also a world financial crisis. An increasingly competitive environment, many companies turn to human resources (HR) in order to stay in business and achieve goals, and maintain profitability. “Resources are invaluable and limited sources of any organizations which cannot be easily replaced” (Zohreh, M; Napsiah, I; Zulkiflle, L; Norzima, Z., 2013).... [tags: Human resources, Human resource management]
1194 words (3.4 pages)
- Human Resource Management Human resource managers have the job of making sure that a companies employees are in alignment with the organizations overall goals. This is not a simple process and requires attention to several aspects of the companies process. HR must address legal issues, planning, recruitment, selection, development and training, pay, safety and health, and labor relations. When management is able to combine all of the above listed items they will at that point be able to maximize the companies overall mission.... [tags: Human resource management, Human resources]
2358 words (6.7 pages)
- History has taught us that there is no easy way to success when dealing with any company. That it is natural for humans to disagree with each and that we must come to some type of conclusion that may benefit one side of the argument over the other. We have history to thank for all of the acts that America has passed over the past century. Through many cases and trials, we have been able to model many companies on a path to increased productivity. Something that we can apply is that it is not always possible to meet the “bottom line” every oppourtunity we get.... [tags: Human resource management, Human resources]
950 words (2.7 pages)
- The Human Resources Function Human Resources is responsible for managing all aspects of personnel practices, processes, and policies. This area of the business focuses on all activities relating to employees as well as how they impact the business. Historically, the role of Human Resources in the work place consisted mainly of clerical work, hiring and firing. This has changed significantly over the years as businesses continue to evolve and further recognize how important this function is to the success of the company.... [tags: Human resource management, Human resources]
1242 words (3.5 pages)
- As a requirement to write my interview paper for the Human Resources Management course, I interviewed Ms. Beverly Daly, who’s a Human Resources Director at USF. The purpose of this interview to obtain more information about the inner working in Human Resources department and the challenges faced working in that field. I started the interview by asking about Beverly’s education background, she had a Bachelors in Public Relations from the University of Florida and a Masters in Business administration from the University of South Florida.... [tags: Human resources, Human resource management]
1648 words (4.7 pages)
- Introduction This essay discusses the relationship existing between Human resources management and human resources development. Furthermore it explains about learning, change and quality management; and the process in which organisational change can be tackled through learning and development. Also, the terms Learning & development and Human resource development is been used interchangeably. Human resources management (HRM) and Human resources development (HRD) Ever since the origin of the concept of HRM, it is known to have taken care of the basic and administrative personnel management activities in an organisation.... [tags: Human resource management, Human resources]
1215 words (3.5 pages)
- HR Challenges With all the news blasting us every day about the hard times that we are encountering in today 's economy, what types of unique challenges do you think these times pose for the human resources management professional in any organization, large or small business. As you prepare your Main Post, in answering, include at least one real-story that you find on the Web that illustrates some of the challenges that human resource managers are facing. Managing human resources can be remarkably demanding for small businesses that lack the resources of larger companies.... [tags: Human resource management, Human resources]
1003 words (2.9 pages)
- Human Resource Management Explained Joshua S. Borne Barry University Human Resource Management Explained Today’s business environment is ever changing. What took years to develop and distribute is now done in just days. With this ever evolving environment, business culture has to adapt to change and with it Human Resource Management (HRM) needs to change as the business environment changes. It needs to do this as an issue of reacting to changes in that environment and if foreseeing such changes and settling on proactive choices about the way of HRM.... [tags: Human resource management, Human resources]
3425 words (9.8 pages)
- Human Resources may aid organizations in many ways. It is seen as being an advocate of employees, to help ensure fair and equal treatment is given to all employees regardless of personal backgrounds or circumstances. Human Resource Management is the design of management systems that allows organizations to effectively use its human talent to reach the company’s goals and missions. Managing people in organizations is more than administering a pay program, designing trainings or avoiding law suits.... [tags: Human resource management, Human resources]
711 words (2 pages)
- Information Systems for Human Resources Management Information is an essential tool for managers in the retention, recruitment, utilization and evaluation of human resources in health services organizations. Since they support the goals and objectives of the organization, information systems play an important role in planning and management of human resources. These systems will serve as an important personnel administration operational programs, including employee record keeping, budget control, compensation, benefits management, and government reporting.... [tags: Human Resources Management]
1340 words (3.8 pages)
There are two types of theories, Theories X- These kind of companies focus on Industrial Engineering hence they focus more on work production and getting things done. They follow the Talyorist approach. This theory would be applicable to firms who focus on cost minimization. On the other hand, companies that focus of welfare maximization, follow Theory Y approach. They focus on Humanistic Management Philosophies and give importance to employee relationship. In order to sustain competitive advantage, companies put a higher premium on long-term cooperative relations with their employee. These relationships represent valuable firm specific investments, which are costly to replace and which the firm therefore seeks to protect by binding employees to the firm long-term.- Baron & Keps
Moving on, I will present comparison of 2 Fortune 500 companies, comparing the impact of aligning of Hr strategies with the organizational strategies.
International Business Machines(IBM) , one of the leading computer companies in the American industry. IBM was at its peak and doing considerably well in the 1960s and then the gradually started declining in the 1970s. IBM was a product oriented company and centralized in nature. They believed in delivering error-free products to the market. Conformity, teamwork and dedication were central norms. IBM was an attractive employer as it gave an opportunity to work with the best of industry, both in terms of human resources as well as technical resources. HR policies included factors like no-layoff guarantee, premium wages and outstanding working conditions. it also focused on career development of employee. It promoted team ply and team spirit. The strong internal culture helped to homogenize the different national and international nit of IBM. These policies were aligned very successfully with the HR policies. However, form 1978 the earning began to fall and this had no economic explanation to it. It was solely because of misalignment of the HR policies of the organizational strategies. The Hr strategies were being followed since 15 years, as the time progressed there was a change in the industry and IBM needed to modify their strategies. IBM needed to shift from the centrally directed product focus to a more market driven focus, in order to survive in an increasingly competitive environment. Secondly, the hierarchy needed to be eliminated and they need to introduce a more flat structure in the organization. Thus it got increasingly difficult for IBM to retain employees and keep them attached to the organization, as the external offers were more lucrative.
Second example of Hewlett Packard (HP), another Fortune 500 companies, into the Electronic industry, which portrayed a strong alignment among the firm’s HR practices. Hp was regarded as a pioneer in high commitment work system. They focused of progressive employment policies. They believe in ‘ creating an environment in which employees can fulfill their natural desires to do good, creative work. To complement the business strategy, HP has derived a suitable HR strategy, which focused on long-term employment, minimizing layoff and offering above market compensations, providing flexibility to workers in regard to work life balance. One of the striking features of the HR strategy is that if focused on internal promotion, and thus gave intensive training to the employees. This made the employees feel like an integral part of the organization and which then makes them work harder for IBM. Hence the strategies were consistent and very well aligned with each other. This strategy fits their business strategy of designing, manufacturing and then servicing top quality products. This clearly creates a competitive advantage showing that in spite of such cutthroat competition, HP has managed to retain its talented employees creating an edge over the other their competitors. Hence careful alignment of HR strategy with organizational objective ensures success both in terms of employee satisfaction leading of higher productivity, thereby increasing profitability finally leading to accomplishment of organizational objective.
Hence when we compare to the two examples, we can understand the reason for the downfall of IBM. Initially their alignment of the strategies was working fine but as time progressed they need to realign the strategies, which they failed to recognize. IBM’s bureaucracy, created a wide gap between the management and the employees, which leads to miscommunication of objectives. As the industry matured and involved IBM’s strategy became externally less fit leading to the downfall.
Similarly another example of inconsistency is the Portman Hotel, where there was a major misalignment of the HR policies and the business strategies. One of the main policies was the ‘do anything’ policies wherein the employees have the freedom to do what they want, however the HR recruitment strategy said otherwise. They wanted people who scored high on assertiveness and need for structure that of course does not align with the ‘do anything’ policy, leading to high employee turnover. Secondly, they believed in low compensation and at the same the employee were expected to lots of work, their job description was fairly broad and open ended, which demanded a high salary. Another factor which was unfair according to me was that the recruits were college graduate and trade school graduates hence their salary were not matching well with their education qualification. The management also considered employees as important asset of the organization, although when they were approached by employee complaints, and suggestions it was completely ignored, leaving the employees neglected.
These contradictory strategies led to occupancy rates dropping drastically, tip income being 1/5th of what was forecasted, and the guest confused regarding the role of the Personal valets, and at the same time high turnover rate of the Personal Valets.
Hence Human Resource is definitely the key to organizational success of failure, as we have clearly witnessed in the examples mentioned above. Misalignment could lead to breach of trust to the employees, which would reduce their loyalty towards the organization leading to lower productivity eventually leading to failure of organizational objectives.
I would like to conclude by illustrating a table below that links the 3 significant organizational strategies (typically followed by most organizations) to Human Resource policies and in turn the employee behavior towards. Implementation of these policies will ensure organizational success both in terms of wealth and wealth maximization
|Organizational Strategy |Employee Role Behavior |Human Resource Policies/Strategies |
|Innovation |A high degree of creative behavior |Jobs that require close interaction and |
| |Longer-term focus |coordination among groups of individuals |
| |A relatively high level of |Performance appraisals that more likely to |
| |cooperative, Interdependent |reflect longer-term and group-based |
| |behavior |achievements |
| |A moderate degree of concern for |Jobs that allow employees to develop skills |
| |quality |that can be used in other positions in the |
| |A moderate concern for quantity |firm |
| |An equal degree of concern for |Compensation systems that emphasize internal |
| |process and results |equity rather than external or market- based |
| |A greater degree of risk taking |equity |
| |A high tolerance of ambiguity and |Pay rtes that tend to be low, but that allow |
| |unpredictability. |employees to be stockholders and have more |
| | |freedom to choose the mix of components that |
| | |make up their pay package. |
| | |Broad career paths to reinforce the |
| | |development of a broad range of skills |
|Quality Enhancement |Relatively repetitive and |Relatively fixed and explicit job descriptions|
| |predictable behaviors |High levels of employee participation in |
| |A more long-term or intermediate |decisions relevant to immediate work |
| |focus |conditions and the job itself |
| |A moderate amount of cooperative, |A mix of individuals and group criteria for |
| |Interdependent behavior |performance appraisal that is mostly |
| |A high concern for quality |short-term and results orientated |
| |A modest concern for quantity of |A relatively egalitarian treatment of |
| |output |employees and some guarantees of employment |
| |High concern for process |security. |
| |Low risk-taking activity |Extensive and continuous training and |
| |Commitment to the goals of the |development of employees |
| |organization | |
|Cost Reduction |Relatively repetitive and |Relatively fixed and explicit job descriptions|
| |predictable behavior |that allow little room for ambiguity |
| |A rather short-term focus |Narrowly designed jobs and narrowly defined |
| |Primarily autonomous or individual |career paths that encourage specialisation, |
| |activity |expertise and efficiency |
| |Moderate concern for quality |Short-term results orientated performance |
| |High concern for quantity of output|appraisals |
| |Primary concern for results |Close monitoring of pay levels for use in |
| |Low risk taking activity |making compensation decisions |
| |Relatively high degree of comfort |Minimal level of employee training and |
| |with stability |development |
Source: Storey and Sisson (1993,p.66), adapted from Schuler and Jackson (1987,pp, 209-13)
Schuler and Jackson’s model of employee role behaviors and HRM policies association with particular business strategies.
Strategic Human Resources -Baron, James d.; Kreps, David m.
Strategic human resources published by John Wiley & sons, inc
Human Resource Management- Rhetorics and Realities, Karen Legge. Chp 4- HRM and ‘strategic’ integration with business policy.